Insurance carriers sometimes exit specific markets or fully withdraw from the State of Ohio. These decisions can significantly impact agencies, clients, and daily operations. Understanding what these changes mean—and how to prepare—helps agencies remain compliant while supporting clients through the transition. 

A market exit occurs when a carrier stops writing certain lines of business in Ohio. A full withdrawal occurs when a carrier leaves the state entirely and surrenders its Certificate of Authority. 

Although Ohio does not require advance notice for most product lines, carriers must still comply with Ohio’s statutory non‑renewal rules. 

1. Overview of Carrier Actions 

Carriers may take one of two actions in Ohio: 

• Market Exit (Partial Exit): The carrier stops writing specific lines of business but continues operating in Ohio.

• Full Withdrawal: The carrier ceases all business activity in Ohio and exits the state entirely. 

In both cases, carriers must follow Ohio non‑renewal requirements, even if no advance notice is mandated. 

2. Market Exit (Partial Exit) 

When a carrier exits a specific market: 

• The carrier stops writing one or more lines of business. 
• Notice is typically provided to agencies by mail or email. 
• Ohio generally does not require advance notice, with the exception of Medical Professional Liability. 
• Statutory Ohio non‑renewal rules still apply to affected policies. 

3. Full Withdrawal from Ohio 

A full withdrawal occurs when a carrier exits Ohio entirely. This process: 

• Is overseen by the Ohio Superintendent of Insurance. 
• Requires the carrier to follow statutory non‑renewal procedures. 
• Requires surrender of the carrier’s Certificate of Authority. 
• Results in the cessation of all business activity in the state. 

4. What to Expect in a Carrier Notice 

Carrier notices related to exits or withdrawals typically include: 

• Carrier name and NAIC number 
• Contact information and effective date 
• Lines of business being discontinued 
• Lines remaining unchanged (if applicable) 
• Operational changes, such as:  
  • No new business accepted 
  • Policies issued as non‑renewals 
  • No reinstatements 
  • Limited or restricted payments 
  • Termination of producer authority 

5. Agency Preparation Checklist 

Agencies should take proactive steps as soon as a carrier exit or withdrawal is announced: 

• Run a book‑of‑business report for affected lines 
• Immediately stop submitting new business 
• Identify and track clients receiving non‑renewal notices 
• Confirm reinstatement and payment restrictions 
• Follow carrier‑specific payment guidelines
• Document all client and carrier communication 
• Begin identifying potential replacement markets 

6. Client Non‑Renewal Rights in Ohio 

Under Ohio law: 

• Non‑renewal notices must be sent at least 30 days prior to policy expiration 
• Non‑renewals occur at the end of the policy term 
• Premium refunds do not apply, as coverage remains in force through expiration 
• Notices typically state the reason as Carrier Exiting the Market in the State
• Late notices extend coverage for 30 days beyond the mailing date 

7. Moving the Book of Business 

When a carrier exits a market or withdraws from Ohio: 

• No new business may be written after the effective date 
• Remarketing efforts should begin as early as possible 
• Use the appropriate client communication templates
  • Replacement coverage available 
  • Replacement coverage not available 
• Document all remarketing activity and client discussions 

Conclusion 

Carrier market exits and state withdrawals can disrupt agency operations and client relationships. However, early preparation, clear communication, and thorough documentation help agencies manage these transitions effectively. 

By staying familiar with Ohio’s non‑renewal rules, running timely reports, and maintaining organized workflows, agencies can protect clients, remain compliant, and continue to provide reliable guidance during periods of market change. 

About the Author

Jeannine Giesler, CISR, CPIA, and past President of the OIA Board of Directors, Foundation for the Advancement of Insurance Professionals, currently serves as Resource Center Advisor for the OIA. The purpose of the Resource Center is to contribute to building a comprehensive library of resource materials for our members. We pride ourselves on being the one-stop shop for all OIA members and work to solve every problem or situation you may come across.

Cited Sources

Ohio Revised Code Chapter 3937 – Ohio Laws 

Title: Chapter 3937 – Ohio Revised Code | Ohio Laws 

Author: Ohio Legislative Service Commission 

Date: Updated on an ongoing basis 

Ohio Revised Code  Section 3937.26 | Notice of nonrenewal of policy – contents.  

Date: Effective September 13, 2004 

Ohio Revised Code (ORC) Chapters 3901 Ohio Revised Code, 3905, and 3937 as well as Ohio Administrative Code (OAC) Rule 3901-1-54.  

Ohio Automobile insurance Plan – OAIP 

Ohio Automobile Insurance Plan (OAIP) (Assigned Risk) for high-risk drivers  

Ohio Department Of Insurance 

Or exploring Financial Responsibility Bonds (FR Bonds) as alternatives to traditional policies. 

E&O  Sample Template Letters 

• The Template Sample: No-Renewal will be with Another Carrier.  

1.Attempting to replace coverage with another insurance company. 

• The Template Sample: No-Renewal Unable to Replace With Another Carrier.  

2.Our agency does not currently have another market that writes your type of business.